Correlation Between China Life and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Life Insurance and Jinhui Liquor Co, you can compare the effects of market volatilities on China Life and Jinhui Liquor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Life with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Life and Jinhui Liquor.
Diversification Opportunities for China Life and Jinhui Liquor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Jinhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Life Insurance and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and China Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Life Insurance are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of China Life i.e., China Life and Jinhui Liquor go up and down completely randomly.
Pair Corralation between China Life and Jinhui Liquor
Assuming the 90 days trading horizon China Life Insurance is expected to under-perform the Jinhui Liquor. In addition to that, China Life is 1.04 times more volatile than Jinhui Liquor Co. It trades about -0.05 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.03 per unit of volatility. If you would invest 2,208 in Jinhui Liquor Co on September 13, 2024 and sell it today you would lose (41.00) from holding Jinhui Liquor Co or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Life Insurance vs. Jinhui Liquor Co
Performance |
| Timeline |
| China Life Insurance |
| Jinhui Liquor |
China Life and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Life and Jinhui Liquor
The main advantage of trading using opposite China Life and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Life position performs unexpectedly, Jinhui Liquor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| China Life vs. BYD Co Ltd | China Life vs. China Mobile Limited | China Life vs. Agricultural Bank of | China Life vs. Industrial and Commercial |
| Jinhui Liquor vs. China Life Insurance | Jinhui Liquor vs. Cinda Securities Co | Jinhui Liquor vs. Piotech Inc A | Jinhui Liquor vs. Dongxing Sec Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stocks Directory Find actively traded stocks across global markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |